Hello colleagues, at this moment I have approached the queue to analyze the XAUUSD pair on the M5 timeframe. I trade based on a strategy that I have tested (and not only me), which uses the well-known Relative Strength Index indicator with default settings. Simple, but reliable. What signals do we have? The indicator entering the 70 zone indicates buyer exhaustion, which is a high probability of further decline. We can enter the trade at the price of 3225.67. I enter the trade with two orders. The first order is placed away from the current prices, and the second one, in case of a slight pullback, I place on the M1 timeframe where we sell at the market price. The risk/reward potential is at least 1/2 since the timeframe is not very high. If the trade gives more than one to two, I trail the position as long as there is strength. It is well known that the currency markets are full of false moves and price spikes. Therefore, my stop orders are quite wide - 20 pips, thus avoiding false signals. Wishing everyone a productive day!
